“This is a game that the media love to play, but in this case as in most cases with this government, you’re barking up the wrong tree,” the Prime Minister told reporters in Darwin when asked if the two were split on the issue.

“Joe and I and Warren Truss have been in very regular dialogue on this issue,” he said.

Mr Hockey has previously declared the airline was a special case.

“If you think we are being dragged kicking and screaming on this, you are right,” the Treasurer told reporters a fortnight ago.

Yesterday in Question Time Mr Abbott backed away from the idea of a debt guarantee, arguing what you give one business you have to provide to others.

He today reaffirmed that, claiming there is more than one airline which would seek such help.

“What you do for one business you have to be prepared to do for all like businesses and that’s the issue that we face with the request for a debt guarantee or a line of credit for Qantas,” the PM said.

“If we’re serious about protecting jobs at Qantas, if we’re serious about trying to give Qantas a fair go, and I am, I am, we would get rid of the carbon tax and we would move swiftly to address the restrictions that the sale act places on Qantas,’’ he said.

Meanwhile, Qantas chief executive Alan Joyce is warning against any strike action, arguing it would make the situation worse.

“I think the unions and our employees know that Qantas is in extremely difficult circumstances at the moment and the sensible heads out there know that the last thing you want to do is to be talking about industrial action,” Mr Joyce told ABC Radio.

“It just adds oil to the fire.”

The chief executive is resisting calls for his resignation, declaring he is the person to fix the airline’s woes.

Alan Joyce announces 5000 jobs cut
2:08

Qantas CEO Alan Joyce announces 5000 jobs will be cut, after a $252 million half-year loss.

Sky News

27 Feb 2014

News

“I believe I am the man, the board believes I am the man, the shareholders believe I am the man,” Mr Joyce said.

“I believe I have the plan, I have the management team, I have the organisation and the determination to ensure that Qantas survives, Qantas changes and that we have a business that is going to be successful in the future.”

Despite the Prime Minister going cool on the idea of a government debt guarantee, Mr Joyce is still seemingly confident.

“We’re still in dialogue with them and we’re still talking to them about what do they need in order to balance up the short term problems that are there,” he said.

Meanwhile, Labor claims the Federal Government has teased Qantas by proposing to offer a debt guarantee to the airline and now backing away.

“The government is in a position to do what hinted they would do, what they briefed journalists they would do, what they were saying they would do, until it came to the time for action yesterday,” Opposition transport spokesman Anthony Albanese told Channel Nine.

Mr Albanese has accused the Coalition of now pulling the rug out from underneath Qantas.

He later went further accusing the government of an “extraordinary backflip”, as it looks unlikely to offer a debt guarantee.

He reiterated Labor’s view that Qantas needs to remain the national carrier.

“If we simply remove the Flying Kangaroo and replace it with a flying panda or a flying camel, then we will not be acting in Australia’s national interest and that is why this is a particular case and circumstances are there that warrant government action as the government indicated it would do,” the Opposition spokesman for transport told reporters at Sydney Airport.

He said the Opposition was willing to look at changes to the Qantas Sale Act, but not the overall cap on foreign ownership.

It wants it to back changes to the Qantas Sale Act and help repeal the carbon tax.

“They can pass a bill to lift the foreign ownership lifts from 49 per cent, which would give the opportunity for people to invest in Qantas from overseas but secondly, they could also pass the carbon tax repeal bills in the Senate, which are sitting there, waiting to be passed,” Leader of the House Christopher Pyne said.

He claimed the tax cost the airline $106 million last financial year and will continue to be a “burden” until it is scrapped.

A News Corp Australia poll yesterday found the majority felt Qantas should open itself to foreign investment. Another 30 per cent said Qantas should be left to their own devices, and less than a quarter said the Flying Kangaroo should get government help.